For an e-commerce brand, it might be appealing to use the lower international shipping options. But at what cost to your customers?
If your deliveries are inconsistent, untimely, and with scattered results, it might cause reputation harm and force customers to turn their cheek to your brand.
We will discuss the various factors you should consider when you’re choosing an international shipping option. While some may be the cheapest, their impact goes far beyond the initial price reduction.
International Shipping Rates
If we started comparing shipping rates, they wouldn’t be accurate for your circumstance. Why? Because there are quite a few factors that go into your shipping rate. Understanding how to calculate shipping costs can be confusing and stressful. Luckily, we have narrowed down the factors to consider for your business. These factors, once evaluated, are what influences your shipping decision.
They include but are not limited to:
Weight – Depending on how much your item(s) weighs, it’s going to affect the cost. Heavy items such as a 50-pound chandelier is going to cost a lot more than a 2-pound robe, no matter where you send it.
Dimensions – Many carriers gauge their pricing via the dimensions of your package, known as dimensional weight. For example, a package weighing 5-pounds with dimensions of 24 x 18 x 18 (inches), has a new dimensional weight of 46.84-pounds (formula is LxWxH/166).
Time frame – The time in which you need your item to arrive will influence the shipping price, and, should you want your items expedited, sometimes the cheaper shipping options fail you. USPS, while usually being one of the cheapest, has fairly inconsistent delivery times, while FedEx has a fantastic reputation for international deliveries.
The last factor we’d like to touch on is shipping zones. Essentially, shipping zones are geographical locations that the shipment will pass through. Carriers create shipping zones as it allows them to dictate accurate pricing for the distance a package must travel. With that being said, different carriers map out different shipping zones.
This means they don’t always stack against each other. While one carrier might charge $X amount to send a package to Hong Kong, another might charge half of that.
USPS vs. FedEx vs. UPS
Often, when someone is trying to ship internationally (from the US), they tend to default to USPS or FedEx. These carriers handle many of our domestic shipping needs, so we trust them. For international shipments, it’s easy to glean that USPS is the cheapest option, albeit the longest shipping times. FedEx, on the other hand, has a fantastic reputation for timely deliveries, and with Verde’s international shipping discounts for our clients, they are very competitive.
Here at Verde Fulfillment, we highly recommend using FedEx for your international shipping needs through us. Overall, FedEx’s pricing, deliverable consistency, and professionalism tend to set the bar for international shipments, AND make our clients very happy with the results.
How About Insurance?
Most legacy carriers (such as FedEx) default to a $100 basic coverage plan. This is what is known as “Basic Insurance.” Additionally, there’s usually a flat rate when it comes to packages with a perceived value of $100 to $300. If you need to insure packages that exceed these basic rates, there are options available for a nominal charge.
What Type of International Shipping Is Best for Your Business?
While we advocate for FedEx’s pricing and performance, there is no one-size-fits-all answer. The reality is that international shipping needs vary based on a company’s needs. A company's shipping container, destination country, or delivery time will vary and cause a difference in the shipping rate.
Consumer expectation and operational excellence are large components, too. For instance, an NRF study—done three years ago—concluded that 75% of consumers expect free shipping for orders beneath $50.
Additionally, consumers now expect fluid delivery processes, excellent product returns options, and to have their package delivered in a timely window. Given that Amazon prime offers free 2-day shipping, consumer expectations have shifted. Today, the delivery process can make or break a company’s reputation. Today, 48% of consumers claim they usually receive a package within 2-3 days. During the 2020 holiday season, 75% of consumers experienced delayed, cancelled or late deliveries.
Unfortunately, consumers rarely understand the process involved with actually getting them their product. This means companies need to adapt, meet expectations (even if they’re a bit outside of the window), and invest in a solid order fulfillment process.
For that, there’s us.
Verde Fulfillment USA
Here at Verde Fulfillment USA, we specialize in managing the end-to-end process of your e-commerce order fulfillment. This means inventory management, pick pack ship, and then the shipment itself with tracking numbers.
With over 53% of our clients being international, we’ve become the worldwide shipping experts for e-commerce shipments.
We specialize in:
Being that we handle the entire fulfillment process, we’ll work with your shopping platform to identify that most cost-efficient and effective international shipping model. By integrating your shopping cart, EDI, and backend, you don’t have to worry about the tiny details of moving your product.
Instead, you can sit back and let us handle the logistics while you focus on driving sales and scaling your brand. We understand how important customer satisfaction is for an e-commerce platform, especially in today’s day and age. With our operational excellence, you can rest assured that you’ll have a perfect shipping reputation.
Reach out today to learn the cheapest ways to ship internationally!